Retained Earnings Roll Forward Functionality

This functionality provides an automated way to roll forward the retained earnings at the end of a financial year to the Cumulative Retained Earnings at the beginning of the next financial year. This is beneficial for all Consolidation users as the Retained Earnings Account in the new financial year starts afresh and the Cumulative Retained Earnings Account is updated with the Retained Earnings of the previous financial year.

Retained Earnings Account totals are carried forward from year to year and posted to a Cumulative Retained Earnings Account. For example, if you have a total retained earning amount of 9000 for 2017, 9000 will appear as the Retained Earnings Roll Forward for 2018. If you have a total retained earning amount of 10,000 for 2018, then an amount of 19,000 ( 2017 + 2018 totals) will appear in the Cumulative Retained Earning Account for 2019.

If you don't enable this feature and you had a retained earnings account for the Jan-21 period, the total for that account would post to the balance.

With this feature enabled, the same Dynamic Report provides that total based on the prior period total (in this case Jan-21).

To learn more about configuring Retained Earnings Roll Forward, click here. 

Best Practices

Users will see a performance impact when the Consolidation Process is run for a scenario other than the Actual Scenario; the effect will vary based on the number of Interim Currencies and Reporting Currencies defined in the system. It is a best practice to limit the number of Interim and Reporting currencies for optimal performance.